Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) announced the filing of a complaint in the U.S. District Court for the Northern District of Georgia against Saxon Financial Services, Inc. (Saxon) of Atlanta, Georgia. Saxon also does business as Saxon Consultants, Ltd.

The CFTC’s complaint alleges that, since at least July 2006 and continuing through the present, Saxon fraudulently solicited and continues to fraudulently solicit customers in Canada and Europe to trade in off-exchange oil, gas, and foreign currency (forex) options contracts with Saxon and its affiliated businesses, either GIFG (Suisse) SA or Merchant Capital Markets S.A., both of which are foreign firms purportedly based in Geneva, Switzerland. The complaint alleges that Saxon defrauded the customers through deceptive sales solicitations that misrepresented the likelihood of profit and the risk of the trading. For example, in July 2007, a Saxon broker told a Canadian regulatory investigator posing as a prospective customer that, if he bought unleaded gasoline options as recommended by Saxon, he could expect to see a 300 percent return in three months.

Saxon is not registered with the CFTC in any capacity, nor is it registered “overseas” as at least one broker allegedly represented in solicitations.

In its continuing litigation filed October 3, 2007, the CFTC is seeking a permanent injunction against Saxon, restitution to defrauded customers, a return of all ill-gotten gains from Saxon, and a civil monetary penalty for each violation of the Commodity Exchange Act. Federal District Judge Charles A. Pannell, Jr. issued a statutory restraining order prohibiting Saxon from destroying documents and prohibiting Saxon from interfering with CFTC efforts to inspect and copy such documents.

The CFTC filed its enforcement action after extensive cooperation with Canadian regulators, including the New Brunswick Securities Commission, the Alberta Securities Commission, the Saskatchewan Financial Services Commission, and the Ontario Securities Commission. The CFTC also acknowledges the cooperation and assistance of the United States Marshals Service and the Securities and Exchange Commission’s Atlanta office.

The following CFTC Division of Enforcement staff members are responsible for this matter: Peter M. Haas, Kyong J. Koh, Paul G. Hayeck, and Joan Manley.